Councils may face stricter auditing under proposed reforms

Municipal councils could soon be required to have their strategic and financial plans independently audited before approval, under proposed local government reforms aimed at improving transparency, accountability and public trust in municipal governance.

This was highlighted by Manager Governance and Legal, Deputy Electoral Officer and Legal Counsel at Invercargill City Council in New Zealand, Michael Morris.

Speaking during a Ministry of Local Government public consultation in Suva yesterday, Mr Morris said the reforms are designed to modernise existing legislation and strengthen governance standards.

He said a key proposal is mandatory independent auditing of council strategic plans by the Audit Office before they are submitted to the ministry and formally adopted.

Mr Morris said this would provide an additional layer of scrutiny to ensure financial projections and development plans are accurate, realistic and achievable.

He said the aim is to give communities greater confidence in what councils are promising to deliver, particularly on budgets, infrastructure projects and long-term planning.

“The community can then take confidence that your plans are robust, and that the financial numbers and statements you’ve got in there are verified independently,” he said.

He added that independent verification would help prevent unrealistic planning and strengthen public trust in local decision-making.

Mr Morris also said the reforms would improve accountability by ensuring councils not only plan effectively but are also held responsible for delivering on their commitments.

He said the proposed changes form part of a broader effort to update outdated laws and align them with modern governance expectations, where transparency and public oversight are central.

The reforms, he said, are also intended to strengthen relationships between councils and communities by making planning more open, credible and evidence-based, and ensuring public resources are managed responsibly.